Matching
Match the following terms with definitions.
Premises:
Balance sheet
Time period assumption
Full disclosure principle
Objectivity principle
Securities and Exchange Commission
IASB
Generally accepted accounting principles
Statement of retained earnings.
Cost principle
Statement of cash flows
Responses:
A principle that requires the information in financial statements to be supported by independent unbiased evidence.
A report that describes a company's financial position at a point in time.
The governmental agency that has the legal authority to establish accounting rules.
Prescribes that a company report the details behind financial statements that would impact user decisions.
A financial statement that reports the changes in retained earnings over the reporting period; including increases such as net income and for decreases such as dividends or net loss.
Prescribes that assets and services to be recorded initially on a cash or equal-to-cash basis.
Presumes that the life of a company can be divided into periods for reporting purposes.
A report that identifies cash receipts and cash payments over a period of time.
The concepts and rules that govern financial accounting.
An independent group consisting of individuals from many countries that identify preferred accounting practices.
Correct Answer:
Premises:
Responses:
Balance sheet
Time period assumption
Full disclosure principle
Objectivity principle
Securities and Exchange Commission
IASB
Generally accepted accounting principles
Statement of retained earnings.
Cost principle
Statement of cash flows
Premises:
Balance sheet
Time period assumption
Full disclosure principle
Objectivity principle
Securities and Exchange Commission
IASB
Generally accepted accounting principles
Statement of retained earnings.
Cost principle
Statement of cash flows
Responses:
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